Dogecoin bulls set sights on $0.85 as the next significant milestone
- Once DOGE breaks the supply wall of $0.75, a 10% price growth is on the horizon.
- DOGE accumulation has grown in the past few weeks.
In a potential breakout attempt, leading memecoin Dogecoin [DOGE] was making strides to surpass its current $0.70 price level. According to Twitter user Ali Charts, if it successfully breaks through the supply wall at $0.75, a significant 10% upswing can be expected, leading to a price of $0.85 per DOGE token.
#Dogecoin is trying to break out!
— Ali (@ali_charts) July 15, 2023
How much are 1,10,100 DOGEs worth today?
The $0.75 supply wall means many DOGE holders anticipate selling off their holdings at that price level. If the price per DOGE rallies above $0.75, it is considered to be breaking through the supply wall.
Once this happens, Ali Charts anticipates a 10% growth in DOGE’s price to $0.85. According to the analyst, there is a historical pattern of people buying the memecoin at that price level. “176,000 addresses had previously purchased over 12.34 billion $DOGE,” Ali Charts found.
This pattern of increased DOGE accumulation at the $0.85 price level suggests if the altcoin manages to get to that price point in the current market cycle, it might find strong support for its value to climb even further.
How is DOGE currently positioned?
An assessment of the memecoin’s price movements in a daily chart revealed an uptick in DOGE accumulation in the past few weeks in anticipation of a price rally above the supply wall.
Key momentum indicators rested above their respective neutral lines at press time and assumed uptrend positions. For example, the alt’s Relative Strength Indicator (RSI) and Money Flow Indicator (MFI) were 59.80 and 74.05, respectively.
Likewise, DOGE’s Chaikin Money Flow (CMF) returned a positive value of 0.10, resting above the center zero line. A CMF value above the zero line is a sign of strength in the market, as it signals the entry of required liquidity.
Further, a look at the Awesome Oscillator indicator confirmed the bullish nature of the current DOGE market. Although, in the first few days of this month, the Awesome Oscillator returned red histogram bars. Typically, red bars indicate that the current period’s small moving average (SMA) is lower than the previous period’s SMA, suggesting bearish momentum.
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However, with increased accumulation in the last week, this indicator returned only green histogram bars crossing above the zero line at press time. This indicates a trend reversal from bearish to bullish.
Lastly, with the last week marked by positive funding rates on leading exchanges Binance and DyDx, many DOGE holders have placed bets in favor of a further price rally.